What is a Mortgage?
A mortgage is a large loan for buying a property.

Unlike personal loans that can be used to buy anything, a mortgage is strictly for buying the home of your dreams.

A mortgage can be taken out to buy your main home, a holiday home or a home you plan to let out to others.

What are the different kinds of mortgage?
Whilst there are thousands of different mortgages on offer from different lenders there are two main types of mortgages: "repayment" and "interest only".

A repayment mortgage is where your monthly payments gradually pay off both the amount you owe, as well as the interest charged. If you make all of the mortgage payments, the loan is fully paid off by the end of the mortgage term.

An interest only mortgage is where your monthly payments cover only the interest on your mortgage. You need to pay separately into a savings or investment plan in order to build up a sum of money that can repay your whole mortgage at the end of the mortgage term.


How can I find the best mortgage?
Firstly, you need to decide on whether you want a repayment or interest only mortgage.

After that you need to get some impartial advice from a mortgage adviser on what specific type of mortgage suits you, how much you can borrow, over what period of time, etc.

Welcome Home has partnered with FSA-regulated mortgage advisers that offer impartial advice using a range of mortgage products that are representative of the whole of the market.